Skip to main content
No. of Recommendations: 0
In addition to my day job, I provide IT-related services to a client base of small businesses, and expect to to earn $7,000 - $10,000 this year outside of my day job. This is my first tax year tracking business expenses related to my side-business, which I plan to write-off against my income at year-end.

I've been tracking of my expenses on a weekly basis, but am confused as to how to calculate vehicle expenses. My day job reimburses mileage at .37 per mile, but in tracking my mileage and attaching gasoline receipts to my weekly side-business expense sheet, I'm confused how I should calculate vehicle expenses. The way I see it there are two approaches :

1) Calulate my vehicle expense at .37 per mile for milage created traveling to client offices.

Q) If I do this, my vehicle expenses obviously are greater than the gasoline receipts. How does this work come tax time?

2) Calculate vehicle expenses based directly on gasoline receipts.

Q) How do I differentiate between personal vehicle usage, and business usage if I just attach all of my gas receipts?

Thanks in advance for your help.

Nick
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.